18th Sep 2006 07:00
Debenhams plc18 September 2006 18 September 2006 Debenhams plc Pre-Close Trading Update Debenhams plc, the leading department stores group, today releases a pre-closetrading update for the 52 weeks ended 2nd September 2006. Following Debenhams' successful Initial Public Offering on the London StockExchange in May 2006, the company has continued to deliver its strategy of storeexpansion and organic growth through product and store development. Sales for the 52 weeks ended 2nd September increased by 6.6% compared to the 52weeks ended 3rd September 2005. Like-for-like sales have risen by 0.5% comparedto the equivalent period last year. As expected, gross margins continue to improve; this together with encouragingsales growth and continued cost focus means that Debenhams expects to reportthat profit before taxation and exceptional items is in line with the Board'sexpectations at the time of the IPO. At IPO, Debenhams had a contracted new store opening pipeline of 21 stores.Since then two new department stores have opened in Doncaster and Workington. Afurther six contracts have been signed, to create a current total pipeline of 25new department stores. In August, Debenhams agreed to acquire nine stores in the Republic of Irelandfrom Roches Stores. This transaction has now been approved by the IrishCompetition Authority and the stores will be converted to the Debenhams fasciaand trading format during the course of the current financial year. The number of Desire by Debenhams smaller format stores, has also increased fromthree stores trading at the time of the IPO to five now. Contracts have beensigned to open a further three Desire stores. As at 18th September 2006, Debenhams store portfolio, including the storesacquired from Roches, consists of 131 department stores and five Desire storestrading from 10.1 million square feet of prime space across the UK and Republicof Ireland. In addition, Debenhams continues to expand its global presence with30 international stores trading, an increase of 11 from last year. Rob Templeman, Chief Executive, said: "We are pleased with our performance and remain well placed as we enter the newfinancial year. Although, as widely reported, the retail market was challengingin the early part of the summer, there are signs that trading conditions areimproving. We continue to successfully manage our stocks and remain confidentthat the rigorous delivery of our strategy, together with our store expansionprogramme, will continue to drive the growth potential of Debenhams." Debenhams will be reporting its preliminary results for the 52 weeks ended 2September at 7am on October 24, 2006, including a presentation for analysts at9.30am at the City Presentation Centre, 4 Chiswell Street, London, EC1Y 4UP. Enquiries: Media Gainsborough Communications Andy Cornelius 020 7190 1703 Duncan Murray 020 7190 1704 Analysts Debenhams plc Rob Templeman, Chief Executive Chris Woodhouse, Finance Director 020 7408 3302 High resolution images are available for media to view and download free ofcharge from www.prshots.com/Debenhams and www.vismedia.co.uk Statements made in this announcement that look forward in time or that expressmanagement's beliefs, expectations or estimates regarding future occurrences andprospects are "forward-looking statements" within the meaning of the UnitedStates federal securities laws. These forward-looking statements reflectDebenhams' current expectations concerning future events and actual results maydiffer materially from current expectations or historical results. Any suchforward-looking statements are subject to various risks and uncertainties,including: Debenhams' ability to accurately predict customer preferences anddemands; the effectiveness of Debenhams' brand awareness and marketingprogrammes; the occurrence of weak sales during peak selling seasons or extremeor unseasonal weather conditions; competitive factors in the highly competitiveretail industry; Debenhams' ability to successfully implement its new storerollout and department store refurbishment/modernization strategy; Debenhams'ability to maintain its relationships with certain designers and its significantconcession partner; and currency fluctuations and currency risk. * * * Additional risk factors that you may want to consider are: Debenhams' abilityto retain key management and personnel; disruptions or other adverse eventsaffecting Debenhams' relationship with its major suppliers or its store cardprovider; factors outside Debenhams' control, such as changes in the financialor equity markets, adverse economic conditions or a downturn in the retailindustry, or damage or interruptions due to operational disruption, naturaldisaster, war or terrorist activity; and work stoppages; slowdowns or strikes. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Debenhams